Introductory honeymoon rate home loans

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Name		Interest Rate (p.a.)	Comp. Rate (p.a.)	Fees	Monthly Payment
Bank of Queensland 2 Year Intro Rate Variable Home Loan P&IHome≥ 10% Deposit	More Info	2.99%	3.22%	App: $0 Ongoing: $10 per month	$632.68	More Info	Get a low discounted rate for 2 years plus a 100% offset account. And you can get the loan with a 10% deposit.	Compare	loading Fetching your data...
Community First Honeymoon Home Loan P&IHome 1Y Fixed≥ 5% Deposit	More Info	2.44%	3.78%	App: $600 Ongoing: $0 p.a.	$589.12	More Info	A low fixed rate home loan for the first 12 months with no annual fee, no account keeping fee.	Compare	loading Fetching your data...
Bank of Queensland 2 Year Intro Rate Variable Home Loan P&IInvestment≥ 10% Deposit	More Info	3.24%	3.41%	App: $0 Ongoing: $10 per month	$653.06	More Info	Investors can get a low variable rate loan that's available with a 10% deposit. 100% offset account attached.	Compare	loading Fetching your data...

loading

Compare up to 4 providers

If you're looking for a honeymoon home loan with an upfront discount you need to make sure that the loan is a good product for you (regardless of the discount) and check that it doesn't have big discharge or switching fees. This could make refinancing more expensive once the honeymoon rate ends.

What is an introductory home loan?

Introductory rate home loans are designed with first home buyers in mind. They offer a low rate of interest for a special promotional period (normally about a year), which helps keep your payments down. It’s not unusual for this low rate to be a whole percentage point below the standard rate.

Once the honeymoon rate period is over, the interest rate reverts to the product’s standard variable rate. If this revert rate is too high, you can consider refinancing to a cheaper home loan. This can take a little time and money, but will save you money in the long run.

Your lender may have another, similar loan product you could switch to instead of refinancing with a completely new lender.

Honeymoon home loan calculator

*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

Are honeymoon rates the best choice for you?

The most attractive feature of a honeymoon loan is of course its low introductory rate, but before you choose your new home loan, consider the different ways you can save interest in the first years of your mortgage.

Fees. Check the loan fees carefully. Most honeymoon rates are on variable home loan products. This means legally the lender cannot charge you a breaking fee. But if it's a fixed rate introductory discount then exiting the loan during this period can be costly because of fixed loan break costs.
Loan purpose. If you're an investor you need an investment loan. If you're a home owner then it's an owner occupier loan. Most honeymoon home loans are for owner occupiers only.
Features. Some loans allow you to make extra repayments and spend those extra repayments later via redraw if you need them. This can help you repay the loan faster and have extra cash when you need. An offset account does this but is even more flexible because the money is easier to access. Some introductory loans allow extra repayments but might be harder to find one with an offset account.

If you would like to see what effect additional repayments have on your mortgage, check our extra repayment calculator.

What should you do when the honeymoon rate ends?

Make note of your home loan's honeymoon period. It's usually only for one or two years. Your lender may notify you when the period ends, but they might not. Either way, check your home loan statement or log onto your lender's website and check the new rate your loan is now on. It's likely higher than the honeymoon rate.

Then you should do the following:

Compare rates. Check the latest home loan rates and see if your new rate is competitive or not. If not, you should consider switching (also called refinancing).
Find a new loan. Once you've compared rates find a new loan that suits your needs and has a more competitive rate.
Check switching costs. Once the honeymoon rate is over you will most likely be on a variable rate (even if it was fixed before). The loan may have have a discharge or switching fee of a few hundred dollars. The new loan may have some upfront fees too, such as an application fee.
Apply for the new loan. Organise your home loan application and hopefully you're successful. Your new lender will handle the change over and you just need to complete a discharge form with your old lender. And with that the honeymoon is over.

Thank you for your feedback!

Richard Whitten

Richard Whitten is a senior writer at Finder, and has been covering home loans and the property market in Australia for the last 4 years. He has written for Yahoo Finance, Money Magazine and Homely, as well as multiple banks and lenders. Richard has a Certificate IV in Finance and Mortgage Broking, a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communication. He enjoys helping people understand the ins and outs of mortgages so they can make smarter property decisions. Richard trained as a high school teacher but found it easier to manage personal finances than a classroom full of kids. Before joining Finder, he edited textbooks and taught English in South Korea.

Family pledge loans Subdivision Home Loans Comparison

More guides on Finder

As lockdown tightens, what relief are banks offering for home loan customers?
Many banks are offering repayment deferrals and a temporary pause on foreclosures for eligible customers.
Well Home Loans Equity Plus
A review of Well Home Loans’ Equity Plus Home Loan. This is a loan for borrowers with 40% deposits or equity.
loans.com.au Green Home Loan
A detailed review of loans.com.au’s Green Home Loan. Discover the features and benefits of this green home loan.
Nano Digital Home Loans variable loan
A review of Nano’s variable home loan. Learn more about this mortgage.
How your postcode could derail your home ownership dreams
The last 12 months have seen thousands of first home buyers getting into the property market – but some are running into a common yet unexpected hurdle.
Selling in 2021? Here are 6 ways you could add value to your home
SPONSORED: Sometimes you have to spend money to make money. Putting your property on the market is no different.
Mortgage House Fix and Save home loan
This fixed rate home loan offers the rare ability to make extra payments, allowing you to pay down your debt even faster.
Mortgage House Advantage Investment loan
A review of Mortgage House’s Advantage Investment home loan. Learn more about this loan.
Guarantor Personal Loans
If you don't quite meet the criteria for a personal loan, applying with a guarantor can help get your application over the line.
Handypay Green Loan
A Green Loan from Handypay could help you make your home more energy-efficient. Handypay green loans are available up to $75,000 on terms of up to 10 years.

Ask an Expert

Click here to cancel reply.

Display Name

Your Email (will not be published)

Your Question

Subscribe me to Finder’s free weekly newsletter for budgeting tools, timely news and savings essentials to take control of your finances

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

Compare Honeymoon Rate Home Loans